Legislative Session: 83(R)

Senate Joint Resolution 1

Senate Author:  Williams

For Election:  11-5-13

House Sponsor:  Pitts et al.


            Senate Joint Resolution 1 proposes an amendment to the state constitution to create the state water implementation fund for Texas and the state water implementation revenue fund for Texas as special funds in the state treasury outside the general revenue fund to be administered, without further appropriation, by the Texas Water Development Board (TWDB) and used for the purpose of implementing the state water plan that is adopted by the TWDB as required by law.

Senate Joint Resolution 1 authorizes the legislature by general law to authorize the TWDB to enter into bond enhancement agreements payable solely from the state water implementation fund to provide additional security for TWDB general obligation bonds or revenue bonds, the proceeds of which are used to finance state water plan projects, and to use the fund to finance, including by direct loan, water projects included in the state water plan, with Legislative Budget Board (LBB) approval required for each bond enhancement agreement or loan agreement. The resolution also authorizes the legislature by general law to authorize the TWDB to issue bonds and enter into related credit agreements, with LBB approval, that are payable from all revenues available to the state water implementation revenue fund.

Senate Joint Resolution 1 sets out each fund's composition; requires the legislature by general law to provide for the manner in which each fund's assets may be used, subject to certain limitations; and authorizes the legislature by general law to provide for costs of investment of each fund to be paid from that fund. The resolution requires the TWDB, each fiscal year, to set aside an amount from the state water implementation fund sufficient to make bond enhancement agreement payments that become due during that fiscal year and, in each fiscal year in which amounts become due under the bonds or related credit agreements payable from the state water implementation revenue fund, to transfer from that fund an amount sufficient to pay those amounts.